Study of the effect of M&A on real estate industry firms' performance

Zhigang Jin, Vera Li, Heng Li, Martin Skitmore, Hongqin Fan

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

Abstract

This paper proposes to adopt data envelopment analysis (DEA) based on Malmquist total factor productivity (TFP) indices methods to evaluate the effect of mergers and acquisitions (M&As) on acquirers in short-term and long-term windows. Based on analysis of 32 M&A deals conducted by Chinese real estate firms from 2000-2011, the study results demonstrate that the effect of M&A on developers' performance is positive. Through M&A, the developers' Malmquist TFP experienced a steady growth; their technology had noticeable progress immediately after acquisition; and their technical efficiency suffered a slight decrease in the short-term after acquisition, but then achieved a marked increase in the long-term with realization of integration and synergy. However, there is no evidence that the real estate firms have achieved scale efficiency improvement after M&A in either short-term or long-term.

Original languageEnglish
Title of host publicationICCREM 2013: Construction and Operation in the Context of Sustainability
EditorsYaowu Wang, Kunibert Lennarts, Geoffrey Q. P. Shen, Yong Bai, Xiaolong Xue, Chengshuang Sun, Zhili Gao, Yudi Wu, Weirui Xue
PublisherAmerican Society of Civil Engineers (ASCE)
Pages797-805
Number of pages9
ISBN (Print)9780784413135
DOIs
Publication statusPublished - 2013
Externally publishedYes
Event2013 International Conference on Construction and Real Estate Management: Construction and Operation in the Context of Sustainability, ICCREM 2013 - Karlsruhe, Germany
Duration: 10 Oct 201311 Oct 2013

Conference

Conference2013 International Conference on Construction and Real Estate Management: Construction and Operation in the Context of Sustainability, ICCREM 2013
CountryGermany
CityKarlsruhe
Period10/10/1311/10/13

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